News from the Alaska State Legislature, the Office of Senator von Imhof
For Immediate Release: April 05, 2019
Senate Finance Introduces Spending Cap, 50/50 POMV Split
JUNEAU – The Senate Finance Committee today introduced a pair of bills to cap government spending and establish a 50-50 split between dividends and state expenses from the limited annual revenue available from earnings reserve of the Permanent Fund.
Senate Bill 104 caps government spending at $5 billion for fiscal year 2021, allowing for a growth rate based on inflation over the past five years.
“A spending cap gives the Legislature the discipline it needs to keep state spending at a reasonable level from one year to the next,” said Senator Natasha von Imhof, R-Anchorage, co-chair of the Senate Finance Committee. “With an effective spending cap and predictable revenue in place, the state could begin passing a budget on a biennial basis – providing the kind of stability Alaska’s private sector economy needs to grow.”
Senate Bill 103 splits revenue from the annual draw of the Permanent Fund’s earnings reserve equally between dividends and state expenses.
“The Senate is committed to protecting the Permanent Fund and dividends for future generations of Alaskans,” said Senator Bert Stedman, R-Sitka, co-chair of the Senate Finance Committee. “SB 103 creates a revenue limit for government and ensures the dividend program survives by protecting it from being consumed by the operating budget. It draws a line in the sand beyond which the state cannot cross over and take from the dividend.”
Last year, the Legislature passed Senate Bill 26, which limits the annual draw from the Permanent Fund to 5.25 percent of the fund’s market value for five of the last six fiscal years. After three years, the draw rate decreases to 5 percent. SB 26 did not, however, address the near 40-year-old dividend calculation, which is out of sync with the new endowment model for the Permanent Fund. SB 103 seeks to resolve that issue.
“SB 103 is a conversation starter,” said Sen. von Imhof. “Alaskans are struggling between our constitutional obligations to provide for education, public safety, and basic infrastructure and our commitment to a healthy dividend program. This bill seeks to strike the right balance.”
Last Wednesday, the Senate Finance Committee discussed the interplay between the budget and dividends. Under a 50-50 split, eligible Alaskans would receive approximately $2,340 later this year.
SB 103 and SB 104 were referred to the Senate Finance Committee where a hearing is scheduled for both bills on Wednesday, April 10.
For more information, contact Senate Majority Communications Director Daniel McDonald at (907) 465-4066.
News & Videos more >
JUNEAU – The Alaska Senate today unanimously voted for a resolution urging the U.S. to issue a presidential permit allowing a railroad crossing between Alaska and Canada....
The numbers are in for the 2019 Alaska Permanent Fund Education Raffle. The program, in its first year, raised a grand total of $976,400, with 85 percent of the proceeds directly benefiting...
The Alaska Senate today unanimously passed Senate Bill 16 to clarify irregularities detrimental to small businesses in the state’s alcohol license laws.
JUNEAU – The Senate Finance Committee today introduced a pair of bills to cap government spending and establish a 50-50 split between dividends and state expenses from the limited...
Leaders from all parties come together for Alaska’s future economy
JUNEAU – The Alaska Senate today unanimously approved a measure that improves statewide access to vaccines and reduces healthcare costs for providers and insurance payers....
JUNEAU – Today, the U.S. Supreme Court ruled 9-0 in favor of John Sturgeon, finding that the Nation River is state, not federal, land, and is therefore navigable inside of Alaska’s...
JUNEAU – The Alaska Senate today unanimously approved funding to aid communities impacted by the Nov. 30 Southcentral earthquake.
JUNEAU – A bill was introduced in the Alaska Senate this week to give Alaskans the option of donating all or a portion of their Permanent Fund dividends (PFDs) directly to the state’s...
JUNEAU – Today, a bill was introduced in the Alaska Senate to repeal provisions of a new law found to be too restrictive of Alaska’s citizen legislature.
Find your Senator full map
- Chugiak/Peters Creek
- Eagle River
- Jewel Lake, Kincaid, Turnagain, Lake Hood, Sand Lake, Spenard, Dimond, Campbell Lake
- Midtown, Dimond, Huffman, Klatt, Southport, Bayshore, Oceanview
- Huffman, O'Malley, Abbott, Loop, Independence Park, East Dowling
- Northeast Anchorage, Anchorage Hillside, Indian, Bird, Girdwood and Portage
- Downtown, Airport Heights, Fairview, Government Hill, Mountain View, Russian Jack, South Addition
- Spenard, Midtown, UMed
- Muldoon, JBER, College Gate, Nunaka Valley, Wonder Park
- Palmer, Butte, Eklutna, Fairview, Lazy Mountain Knik, Gateway
- Wasilla, Meadow Lakes, Knik Big Lake, Point MacKenzie, Goose Bay, North Fairview
- Mat-Su, Delta Junction, Valdez, Copper River Valley, Talkeetna, Valdez
- North Pole, Farmers Loop
- UAF & University West, Chena Ridge, Kenny Lake, Tok, Copper Center & Tanana
- Adak, Bethel, Cold Bay, Cantwell, King Cove, Nenana, Hooper Bay, Sand Point & Unalaska
- Barrow, Nome, Kotzebue, Northeast + Northwest Alaska